Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥64.64B
• Dividend Yield: 1.49%
• Average Volume (3M): 536.28K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.99
• Revenue Growth: -8.92%
• EPS Growth: 1.67%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 18.80
• Shares Outstanding: 58,695,000
• 10 Day Avg. Volume: 294,130
• 30 Day Avg. Volume: 536,283
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -78.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥5,960.00
• Price Target Upside: 292.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 67.6
• Revenue Forecast (FY): ¥41.10B

• Rating: 64 Neutral
• Price Target: ¥1,293.00 ▼(-14.88% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily supported by strong financial stability and healthy profitability, but is held back by weak cash flow quality (negative free cash flow) and notably bearish technical conditions (below major moving averages with negative momentum). Valuation is neutral-to-slightly supportive, with only a modest dividend yield.

Positive Factors

Conservative balance sheet

A very low debt-to-equity ratio and high equity ratio provide durable financial flexibility and lower solvency risk. Over months this conservative capital structure supports the company's ability to withstand cyclical headwinds, fund operations or opportunistic investments without high refinancing pressure.

Solid profitability margins

Consistent gross, EBIT, and net margins indicate the business sustains pricing and cost structure advantages in construction. These margins underpin recurring profitability, support internal cash generation potential, and help maintain earnings resilience across typical multi-month construction cycles.

Revenue growth trajectory

A multi-year revenue growth trend implies expanding market share or sustained demand for core offerings. Durable top-line growth enhances scale economics, spreads fixed costs, and provides a more predictable base for margin maintenance and longer-term strategic investment decisions.

Negative Factors

Weak cash conversion

Low cash conversion and a recent negative free cash flow signal structural difficulty turning reported profits into usable cash. This constrains the company's ability to self-fund capex, pay dividends or build reserves, and may force external financing or cutbacks if the trend persists over quarters.

Declining earnings growth

A marked decline in EPS growth points to profitability pressure or one-off hits affecting shareholder returns. If earnings momentum remains negative, it can limit reinvestment capacity, reduce retained earnings for future projects, and weaken the company's ability to improve ROE over the medium term.

Moderate return on equity

An ROE in the mid-single digits suggests capital is not being deployed with high efficiency relative to typical corporate targets. Over time this can cap shareholder value creation, making it harder to achieve high compounding returns unless operational or allocation improvements increase profitability.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation designs, manufactures, and sells concrete secondary products in Japan and internationally. The company offers pipeline products, such as hume tubes and synthetic steel pipes, box and arch culverts, assembly manholes, precast joint grooves, wellman products, jip pipes, propulsion pipes, optical fiber compatible products, and antibacterial concrete products; concrete piles; RC segments and FN fittings; and PC and composite wells, and press casts and PRC hollow piers. It also provides multi-arch divided systems, precast guard fences, EMC wall rails, and wall railings; and valve boxes, precast retarding basins, and eco concrete products, as well as optical fiber cables. Further, the company is involved in the construction contracting, and civil engineering and telecommunications works; sale of concrete products and big agents; sports business; manufacture, sale, design, and equipment construction of deplant deodorization system; maintenance of buildings; manufacture and sale of formwork for concrete products; real estate business; laying business; and pipeline diagnosis business. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Nippon Hume Corp. Financial Statement Overview

Summary

Strong revenue growth and solid profitability (net margin 8.22%) are supported by a very conservative balance sheet (debt-to-equity 0.02, equity ratio 74.45%). The main offset is weaker cash conversion, with negative recent free cash flow and a low operating cash flow to net income ratio (0.29).

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.09B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.07B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.49B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	2.97B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.62B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	11.74B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	3.02B	920.21M	1.56B	1.07B	986.51M	935.36M
Total Liabilities	13.38B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	43.76B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1519.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Negative. The current price of 1519 is above the 20-day moving average (MA) of 1361.10, above the 50-day MA of 1513.34, and above the 200-day MA of 1487.69, indicating a bearish trend. The MACD of -93.01 indicates Positive momentum. The RSI at 33.00 is Neutral, neither overbought nor oversold. The STOCH value of 10.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7949	77 Outperform	¥48.00B	14.35	―	3.74%	3.70%	12.26%
5273	75 Outperform	¥101.11B	9.90	―	1.92%	12.72%	28.48%
7943	66 Neutral	¥108.93B	13.03	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥129.11B	10.42	12.89%	3.40%	2.98%	41.11%
5262	64 Neutral	¥64.64B	20.20	―	1.49%	-8.92%	1.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	50 Neutral	¥475.90B	16.11	1.44%	4.80%	0.68%	―

Nippon Hume Corp. Corporate Events

Nippon Hume Sets Share Offer Terms to Raise Up to ¥6 Billion for M&A and Growth

Nippon Hume has set the terms for a disposal of treasury shares via a public offering, a secondary offering by way of over-allotment, and a third-party allotment, pricing the new and secondary shares at ¥1,259 each with an issue price of ¥1,206.52 to underwriters. The combined transactions are expected to generate up to approximately ¥6.02 billion in net proceeds, with up to ¥3 billion reserved as standby funds for M&A to reinforce its foundation engineering and sewerage-related businesses and support expansion of its precast products operations, and any remaining funds to be used as working capital by September 2027, potentially enhancing both its financial flexibility and growth capacity.

The most recent analyst rating on (JP:5262) stock is a Buy with a Yen1635.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Makes Manac a Subsidiary in Strategic Concrete Pile Expansion

Nippon Hume Corporation has completed the acquisition of Manac Co., Ltd., a concrete pile manufacturer and pile-driving contractor based in Aichi Prefecture, making it a consolidated subsidiary as of February 27, 2026. Nippon Hume acquired 112,818 shares, securing 99.7% of Manac’s voting rights and installing a new management structure that aligns Manac’s leadership with Nippon Hume’s executive ranks.

The company expects the acquisition to have only an immaterial impact on its consolidated results for the fiscal year ending March 2026 but positions the deal as part of a broader medium- to long-term strategy. Nippon Hume plans to enhance corporate value by continuing M&A activity, investing in human capital and R&D, and pursuing capital expenditures that support a transition to a carbon-neutral economy, signaling ongoing consolidation and modernization in Japan’s construction materials industry.

The most recent analyst rating on (JP:5262) stock is a Buy with a Yen1708.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Confirms Audited Nine-Month Results Ahead of Equity Offering

Nippon Hume Corporation announced that an independent auditor has completed the quarterly review of its Japanese-language consolidated financial results for the nine months ended December 31, 2025, with no changes required to the figures released on February 6, 2026. The review was conducted in conjunction with a Board-approved disposal of treasury shares and a secondary share offering, supporting the integrity of disclosed financials as the company adjusts its capital structure and prepares for upcoming equity transactions.

For the period, Nippon Hume reported net sales of ¥27.6 billion, operating profit of ¥1.9 billion, and profit attributable to owners of parent of ¥2.7 billion, reflecting modest declines in sales and earnings year on year but an improvement in comprehensive income. The company’s equity ratio rose to 78.0% and net assets increased to ¥46.0 billion, while a two-for-one stock split effective January 1, 2026, was reflected in per-share metrics, signaling a shareholder-friendly capital policy despite softer earnings momentum.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume to Dispose Treasury Shares and Launch Secondary Offering for M&A and Growth Funding

Nippon Hume Corp. has approved the disposal of treasury shares and a secondary offering to raise capital primarily for future mergers and acquisitions and to bolster its financial base. The company plans to use M&A to strengthen its core foundation engineering and sewerage-related businesses, expand its precast products segment and forge alliances with leading firms inside and outside the industry.

Proceeds will also help cover funding needs following the acquisition of Manac Co., Ltd. and restore cash reserves affected by tighter legal and subcontracting regulations. Management expects growing demand from government-led national resilience initiatives and plans to deploy the new funds as working capital to support order growth, new project participation, capital investment and raw materials procurement while maintaining financial soundness.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Reshapes Top Management to Sharpen Infrastructure and Environmental Focus

Nippon Hume Corporation has approved a series of senior management changes effective April 1, 2026, including new roles for key directors overseeing business strategy across sewerage-related, environmental e-CON, foundations, precast, and military-related operations. The reshuffle also extends to executive officers, reallocating responsibilities in business administration, HR, marketing, and group-company secondments, signaling a realignment of its leadership structure to reinforce strategic focus across core infrastructure and environmental business lines.

Senior Managing Director Katsuhiko Inoue will consolidate oversight of business strategy management, including sewerage-related and environmental e-CON business strategy, while Director Hiroaki Sakurai assumes responsibility for military-related and foundations business strategy alongside marketing leadership in Kansai. Among executive officers, Sunao Kato will continue leading the Business Administration Division and Administration Department, while roles for Takanobu Watanabe and Hiroaki Tanabe are shifted to emphasize group governance, military-related business, and integrated precast and sewerage-environment marketing, potentially improving operational coordination and strategic execution.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Posts Lower Nine‑Month Earnings but Affirms Outlook and Ups Shareholder Returns

Nippon Hume reported consolidated results for the nine months ended 31 December 2025 showing a modest 3.7% decline in net sales to ¥27.6 billion, with operating profit down 7.6% and profit attributable to owners of parent falling 11% year on year, though comprehensive income rose and the equity ratio strengthened to 78%. Management left its full‑year forecast unchanged, projecting a recovery with net sales of ¥40 billion and higher operating and ordinary profit, and is combining this with enhanced shareholder returns via a two‑for‑one stock split effective 1 January 2026 and a higher annual dividend for FY2025–26, including commemorative and special components, signaling confidence in the company’s financial base and medium‑term earnings power.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume to Make Manac a Subsidiary to Strengthen Concrete Pile Business in Chubu Region

Nippon Hume Corporation has resolved to acquire shares of Manac Co., Ltd., a Chubu region specialist in manufacturing and installing concrete piles, and make it a subsidiary as part of its “23–27 Plan R” growth strategy. By integrating Manac’s strong regional customer base, production and installation network, and engineering resources, Nippon Hume aims to quickly expand its order intake and market share in the Chubu area, improve transport efficiency and lead times, and increase its ability to handle large‑scale foundation projects. The company expects the combination of both firms’ marketing, technological, manufacturing, and construction capabilities to enhance earnings power, build a more resilient revenue base less exposed to labor and equipment constraints, and strengthen its nationwide competitive position in the foundation business while supporting long‑term, sustainable growth.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen1961.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.